Essential Utilities Inc (WTRG)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 875,945 | 715,143 | 669,275 | 610,400 | 459,298 |
| Interest expense | US$ in thousands | 302,467 | 283,362 | 238,116 | 207,709 | 188,435 |
| Interest coverage | 2.90 | 2.52 | 2.81 | 2.94 | 2.44 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $875,945K ÷ $302,467K
= 2.90
Essential Utilities Inc's interest coverage ratio has shown a slight improvement over the past five years, ranging from 2.44 in December 2020 to 2.90 in December 2024. This indicates that the company's ability to cover its interest expenses with its operating income has generally been consistent. Despite some fluctuations, the trend suggests that Essential Utilities Inc has maintained a level of financial stability in meeting its interest obligations. However, it is important for the company to continue monitoring and managing its interest coverage ratio to ensure sustainable financial health and the ability to meet its debt obligations effectively.
Peer comparison
Dec 31, 2024